Special Report – Modern finance

By
João Paulo Meneses

Macau Business | April2024 | Special Report | Modern Finance

Making it happen

If someone had predicted ten years ago that Macau would emerge as a central hub for hundreds of bond issues, few would have taken it seriously. Even more incredulous would have been the notion of Macau outpacing Singapore in international bond issuances, as it did last year, according to official data.

This feat was made possible only through decisive intervention and support from the mainland, leveraging every available resource. The idea of establishing a stock market, which surfaced at the decade’s end, now appears to be on the back burner. However, it is realised that Macau need not compete directly with Hong Kong to develop a financial sector that contributes at least 20 percent of GDP. Fintech is here and makes this job a lot easier. A step in that direction was taken last year with the establishment of the Micro Connect Macao Financial Assets Exchange (MCEX), an innovative financial market based in the SAR, linking global capital and small businesses in the mainland.

Micro Connect founder and chairman Charles Li shares his vision and aspirations in an exclusive interview for this edition.

Over the past couple of years, local authorities have been enacting crucial new legislation and launched the Macao Central Securities Depository and Clearing Limited (“MCSD”).

Nevertheless, a critical issue persists – this special report underscores: without bolder efforts to attract highly skilled professionals, Macau’s development remains hampered.

Expectations are high for Ho Iat Seng, who history may regard as the architect of modern finance in Macau, after the inaugural Chief Executive… a banker.

Co-ordinated by João Paulo Meneses  [email protected]

Bonds instead of the stock market

The ‘dream’ of establishing a stock market in Macau lasted from 2019 to 2021, only to be swiftly replaced by a highly viable alternative: bonds.

“There are several challenges that must be addressed”

Hugo Maia Bandeira, a local lawyer specialised in banking and finance, stresses that Macau has benefited from mainland China’s strong support in developing the bond market. There is potential for companies from Brazil and Portugal to issue bonds in Macau, but a few hurdles must be tackled to make the SAR attractive in this field, says Mr. Bandeira, a founding partner at CFB Lawyers

Bonds Across Borders

Until now, Mainland China has been fuelling the bond market established at the end of 2018. However, there is a need to diversify and attract new investors

Green light to green bonds

The hardest part is done: Macau is starting to distinguish itself in the green bond niche market

Fintech in our lives

Macau has experienced the ‘fintech flavour’ through electronic payments, but there’s more in the pipeline.

Managing wealth

Macau’s wealth management scheme struggles to lure non-residents

Is Hengqin the (financial) future?

Amid growing efforts to bolster Macau’s financial sector, is Hengqin emerging as a pivotal player in this journey?

A monetary union?

Will the Greater Bay Area move towards a unified monetary system in the foreseeable future? The idea has been floated, but experts believe it will take time, with one scholar suggesting at least 20 years

Human capital conundrum

Shortage of highly skilled professionals has been a persistent issue in Macau, especially in high-value industries such as financial services. Will the new talent attraction scheme finally untangle this knot?

Macau “offers significant opportunities for fintech companies”

In an interview with Macau Business, Professor Wenjin Kang, an expert in the application of fintech in asset pricing, anticipates promising prospects for the future of modern finance in Macau.